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European Agrifood leader Lactogal Relies On CHEP For More Sustainable, Cost-Effective Supply Chain

European Agrifood leader Lactogal Relies On CHEP For More Sustainable, Cost-Effective Supply Chain

Lactogal is a Portugal-based European leader in the agrifood sector, specializing in dairy products, waters and juices. Milk, yogurt, cheese, butter cream and other food products are distributed throughout markets in Iberia and the rest of Europe from production facilities in Portugal and Spain. Lactogal, already a CHEP customer, has signed a 5-year contract renewal for managed pooled pallets.

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Lactogal is a Portugal-based European leader in the agrifood sector, specializing in dairy products, waters and juices. Milk, yogurt, cheese, butter cream and other food products are distributed throughout markets in Iberia and the rest of Europe from production facilities in Portugal and Spain. Lactogal, already a CHEP customer, has signed a 5-year contract renewal for managed pooled pallets.

BUSINESS NEED – Consumers of Lactogal’s products place high value on the company’s efforts to be environmentally friendly. The use of quality pallets that are continuously repaired and reused rather than ending up in landfills and efficient pallet management are major aspects of Lactogal’s efforts to develop a more sustainable, cost-effective supply chain as it grows.

SOLUTION – The new 5-year contract with CHEP represents not only an extension but an expansion of pallet flows, now totalling 2 million plus CHEP pallets per year, to distribute products into existing and new markets. CHEP’s management system minimizes administrative issues. Ordering and tracking pallets are facilitated by CHEP’s proprietary electronic tools.

BENEFITS – CHEP’s vast European coverage of its managed pooled pallet system assures Lactogal that quality pallets will be available whenever and wherever needed, while providing overall supply chain cost savings. CHEP’s business model (reuse, repair and recycle) and reputation as a supply chain sustainability leader helps Lactogal meet its CO2 emissions reduction targets and sustain its image as an environmentally friendly company.

Lactogal Signs 5-Year Contract Renewal with CHEP in Portugal and Spain

CHEP, the supply-chain solutions company, is delighted to announce that Lactogal, a Portuguese food products company, has extended and expanded its agreement to use CHEP’s pallet-pooling services throughout Portugal and Spain, in a move that will strongly support Lactogal’s efforts to develop a more sustainable and cost effective supply chain.

The Lactogal Group is formed of the Portuguese companies Lactogal Produtos Alimentares, Lacticínios Vigor, and Etanor Penha, as well as the Spanish company Leche Celta. Lactogal is a leader in the European agrifood sector, focusing its operations on dairy products and their derivatives, including milk, yogurt, cheese, butter, cream, water and juice.

With its headquarters in Oporto, the company runs its main factories from Modivas, Oliveira de Azeméis and Tocha, in Portugal, and from La Coruña, Lugo, Ávila and Cantabria in Spain. Under the new agreement, Lactogal will use more than two million CHEP pallets annually, enough to ship for example more than 4 billion units of 125g Lactogal yogurt a year.

CHEP’s sustainable business model is a key factor in the manufacturer’s decision to extend the supplier partnership. CHEP offers an environmentally friendly business model, driven by the continuous repair and reuse of pooled pallets. It is an important advantage that Lactogal really values and the company is counting on CHEP to help them meet their own CO2 emissions reduction targets.

CHEP’s Country General Manager for Portuguese Pallet operations, Maria do Céu Carvalho, said: “We have developed a close strategic relationship with Lactogal over many years. Our new agreement enables us to build on the existing business, reinforcing our ability to deliver on such a large scale in response to the needs of one of our largest and most valued customers. It’s an excellent example of two global organisations working closely in partnership to mutual benefit.”